The Economic Order Quantity (EOQ)

question 21

Multiple Choice

The Economic Order Quantity (EOQ) :

• A) Is used to calculate how much safety stock should be carried
• B) Will depend on how many related parts are required in the same period
• C) Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock
• D) Should be calculated once a year
• E) Is a formula that calculates a realistic purchase price for an item

---

Definitions:

Caption

A brief explanation or title accompanying an illustration, article, or video.

Command Button

An interactive button in a graphical user interface that executes a specific command or action when clicked.

Internal Reference

An identifier within a document that points to another part of the same document, such as a footnote or a bibliographic reference.

Name

In computing, a name refers to a label that identifies a variable, function, or entity within a program or system.